Key Budget Highlights
- New income tax rates will be optional without any exemptions/standard Income Tax
- Dividend Distribution Tax (DDT) abolished; Companies will not be required to pay DDT; dividends to be taxed only at the hands of recipients, at applicable rates. Holding companies will not be liable to pay tax on the incoming
- Govt proposes 100% tax concession to sovereign wealth funds on investment in infra
- Housing becomes more affordable, gives tax holiday to affordable housing
- New power generation companies will have to pay 15% tax under the new corporate tax
- Govt proposes deferment of tax payment by employees on ESOPs from startups by 5 years.
- Tax on Co-op societies to be reduced to 22% plus surcharge, as against current 30%.
- Fiscal Deficit target been revised to 3.8% for the current year FY20 from earlier target of 3.3%. The government also pegged the FY21 fiscal deficit target to 3.5%. The revised Fiscal Responsibility and Budget Management Act allows the government an ‘escape clause’ of 5%.
- Receipts for 2020-21 are pegged at Rs 22.46 lakh crore while expenditure at Rs 30.42 lakh crore and the revised estimated expenditure for FY20 has been pegged at Rs 26.99 lakh crore and receipts at Rs 19.32 lakh
- The net market borrowings would be at Rs 4.99 lakh crore in FY 2019-20 and are estimated at Rs 5.36 lakh crore in the next
- Government increased the limit of insurance cover in case of bank failure on deposits to Rs 5 lakh from Rs 1 lakh. The deposit insurance scheme covers all banks operating in India including private sector, co-operative and even branches of foreign banks in India. There are some exemptions like deposits of foreign governments, deposits of central/state governments and inter-bank
- The budget has set the divestment target at Rs 2.1 lakh crore for the upcoming fiscal year. It has maintained the current year gross borrowing at Rs 7.1 lakh
- Government unveiled plans for India’s highways and railways, proposing 1.7 lakh crores for transport infrastructure that includes the accelerated development of highways and plans to monetize 12 lots of highway bundles.
- The government plans to provide piped water across Indian households by 2024 with 3.60 lakh crores in
- The government also announced 12,300 crores for the Clean India mission.
- Customs duty raised on footwear to 35% from 25% and on furniture goods to 25% from 20%.
- Basic customs duty on imports of news print and light-weight coated paper reduced from 10% to 5%.
- 5% health cess to be imposed on the imports of medical devices, except those exempt from
- Lower customs duty on certain inputs and raw materials like fuse, chemicals, and
- Higher customs duty on certain goods like auto-parts, chemicals, etc. which are also being made domestically.
- Customs Act being amended to enable proper checks of imports under
- Rules of Origin requirements to be reviewed for certain sensitive
- Provisions relating to safeguard duties to be strengthened to enable regulating such surge in imports in a systematic
- Provisions for checking dumping of goods and imports of subsidized goods being
- Suggestions for reviews of exemptions from customs duty to be crowd-sourced.
- Excise duty proposed to be raised by roughly 10% on Cigarettes and other tobacco products, no change made in the duty rates of bidis.
- Anti-dumping duty on PTA abolished to benefit the textile
- Enhance allocation of Rs 9000 Crore for senior citizens and ‘Divyang’
- 4,400 Crore allocated for cities to ensure clean air
- Rs 53,700 Crore for welfare of schedule tribes
- Rs 85,000 Crore for welfare of SC and other backward classes
- Insurance cover increased to Rs 5 lakh per depositor
Health Care Sector
- Rs 100 crore allotted to prepare for hosting G20 presidency in 2022
- Allocation of Rs 30,757 crores for 2020-21 for Jammu and Kashmir and Rs 5,958 crores for Ladakh
- FY21 fiscal deficit target pegged at 3.5% of GDP
- Government will bring LIC IPO
- Government to sell part holding in LIC, also in IDBI
- Govt to sell govt stake in IDBI Bank to private investors
- FY21 divestment target pegged at Rs 2.1 lakh crore
- Certain specified categories of government securities will be open fully for NRIs
- Nominal GDP growth for FY21 revised to 10%
Central Government Fiscal Account
Particular (In Crore)
|2.Tax Revenue ( Net Centre)||1317211||1649582||1504587||1535909|
|3.Non Tax Revenue||235705||313179||345514||385017|
|5.Recovery of loans||18052||14828||16605||14967|
|7.Borrowing and other Liabilities||649418||7036760||766846||796337|
|8.Total Receipts (1+4)||2315113||2786349||2698552||3042230|
|9. Total Expenditure (10+13)||2315113||2786349||2698552||3042230|
|10.On Revenue account of which||2007399||2447780||2349645||2630145|
|11. Interest Payments||582648||660471||625105||708203|
|12. Grants in Aid for creation of capital assests||
|13. On Capital account||307714||338569||348907||412085|
|14. Revenue Deficit (10-1)||454483||485019||499544||609219|
|15. Effective Revenue Deficit (14-12)||262702
|16. Fiscal Deficit [9-(1+5+6)]||649418
17.Primary Deficit (16-11)